2Q15 Results

2

This presentation may contain statements that represent expectations about future events or results according to Brazilian and international securities regulators. These statements are based on certain assumptions and analyses made by the Company pursuant to its experience and the economic environment, market conditions and expected future events, many of which are beyond the Company's control. Important factors that could lead to significant differences between actual results and expectations about future events or results include the Company's business strategy, Brazilian and international economic conditions, technology, financial strategy, developments in the utilities industry, hydrological conditions, financial market conditions, uncertainty regarding the results of future operations, plans, objectives, expectations and intentions, among others. Considering these factors, the Company's actual results may differ materially from those indicated or implied in forward-looking statements about future events or results. The information and opinions contained herein should not be construed as a recommendation to potential investors and no investment decision should be based on the truthfulness, timeliness or completeness of such information or opinions. None of the advisors to the company or parties related to them or their representatives shall be liable for any losses that may result from the use or contents of this presentation. This material includes forward-looking statements subject to risks and uncertainties, which are based on current expectations and projections about future events and trends that may affect the Company's business. These statements may include projections of economic growth, demand, energy supply, as well as information about its competitive position, the regulatory environment, potential growth opportunities and other matters. Many factors could adversely affect the estimates and assumptions on which these statements are based.

Disclaimer

3

2Q15 Highlights

• Sales dropped 2.9% in the concession area - residential (-1.5%), comercial (+0.6%) and industrial (-5.4%)

• Investments of R$ 382 million in 2Q15 and R$ 713 million in 1H15

• RGE’s tariff adjustment on June 2015. The effect in parcel B is 2.84%.

• Standard&Poor’s reaffirmed the rating brAA+ with stable outlook for CPFL Energia and its subsidiaries

• CPFL Energia’s shares were down 2.9% on BM&FBOVESPA and 3.7% on NYSE in 2Q15

• Best company of the year on Power Market assigned by Época NEGÓCIOS 360º

• CPFL Santa Cruz took the first place in continuity services ranking in 2014, listed by ANEEL (large distributors – over 1TWh)

• Winner of Abradee Award 2015 in two categories: customer evaluation (CPFL Paulista) and social responsability (RGE)

Resid.

+0.6%

-5.4% -2.4% -2.9%

Commerc. Indust. Others 2Q14 2Q15

-1.5%

Sales in the concession area | GWh

Sales by consumption segment | GWh

14,621 14,191

-4.2%

TUSD

-2.9%

-2.4%

3,127 3,129 +0.1%

-2.2%

+5.7%

4

+2.1%

-1.4%

Generation Installed Capacity¹ | MW

Sales growth in the concession area | Comparison by region | %

Contracted Demand l MW

1) Take into account CPFL Energia’s 51.6% stake in CPFL Renováveis

Captive market (Distribution)

Renewable Conventional

2Q15 Energy Sales

Market Breakdown in the Concession Area| 2Q15

-20%

0%

20%

40%

60%

80%

2Q10 2Q11 2Q12 2Q13 2Q14 2Q15

82.983.9

80

100

120

140

Jan-1

0

May-1

0

Sep-1

0

Jan-1

1

May-1

1

Sep-1

1

Jan-1

2

May-1

2

Sep-1

2

Jan-1

3

May-1

3

Sep-1

3

Jan-1

4

May-1

4

Sep-1

4

Jan-1

5

May-1

5

Confiança do Consumidor

Taxa média 2008-2014

7.4

4.5

6.3

Jan-1

0

Apr-

10

Jul-10

Oct-

10

Jan-1

1

Apr-

11

Jul-11

Oct-

11

Jan-1

2

Apr-

12

Jul-12

Oct-

12

Jan-1

3

Apr-

13

Jul-13

Oct-

13

Jan-1

4

Apr-

14

Jul-14

Oct-

14

Jan-1

5

Apr-

15

67% 1Q

10

2Q

10

3Q

10

4Q

10

1Q

11

2Q

11

3Q

11

4Q

11

1Q

12

2Q

12

3Q

12

4Q

12

1Q

13

2Q

13

3Q

13

4Q

13

1Q

14

2Q

14

3Q

14

4Q

14

1Q

15

2Q

15

2.4

%

1.9

% 4.1

%

1.2

%

-0.2

%

0.6

%

2.9

%

-1.3

%

3.2

%

2.5

%

0.0

% 1.5

%

-0.4

%

0.8

%

0.8

%

0.5

%

1.3

%

0.4

%

-0.1

%

1.3

%

-2.7

%

-4.6

%

1) Source: PME/IBGE - New Metodology; 2) Economically Active Population 3) Quarter compared to the same quarter last year 4) Source: FGV

Unemployment Rate¹ | % of EAP²

Consumer Confidence Index4 Index Base Sep/2005 = 100

Income Mass³

Average price variation (%) | in R$/MWh Residential of the CPFL Energia

5

Unfavorable economic environment and strong higher tariffs inhibit residential consumption

Tariff Flags (Red)

48%

19%

RTE/RTA

Confidence Consumer

Average Rate 2008-2014

1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15

4.3

1.8 2.03.0

1.6 2.3 2.2 1.7 2.1 2.13.2 3.7

6.0

2.3

-0.7 -0.3-1.3

-5.3

1) Number of days and temperature adjustmens

Consumption per residential customer | Quarter compared to the same quarter last year (%)¹

Residential costumers Evolution | In thousands

6

Breakdown of electrical equipment in total residential consumption | In % (2Q14)

2Q14 2Q15

6,638 6,828

+2.9% Others Ar/Ventilador

Lightining

Shower

Washing machine

Refrigerator/ Freezer

TV

Clothes Iron

Behavioral changes have led to a fall in consumption per residential customer in 2Q15

Delinquency Evolution R$ million in D90/Revenues (LTM)

Allowance for doubtful accounts R$ million

Delinquency

7

Energy Bills CPFL Energia

Energy Bills Group B

23 24

15

23 21

41

1Q14 2Q14 3Q14 4Q14 1Q15 2Q15

75%

1) Excluding construction revenues.

-10.3% R$ 79 million

Net Income EBITDA Net Revenues¹

IFRS

EBITDA Net Income

2Q14 2Q15 2Q14 2Q15

Proportionate Consolidation of Generation (A) 22 6 18 35

Sectorial Financial Assets & Liabilities (B) 38 37

GSF and Energy Purchase (CPFL Geração and CPFL Renováveis) 59 141 46 99

Provision for asset write-off (Bio Pedra TPP) 6 6

Reallocation of costs with Basic Network Losses - CCEE 12 8

Labor contingencies 50 33

Non-recurring items (C) 71 197 53 139

Total (A+B+C) 131 191 109 173

2Q15 R$ 90 million

2Q14 R$ 145

million

2Q15 R$ 692 million

2Q14 R$ 772

million

2Q15 R$ 4,878 million

2Q14 R$ 3,677

million

32.7% R$ 1,201 million

-37.9% R$ 55 million

3.5% R$ 9 million

2Q15 R$ 264 million

2Q14 R$ 255

million

2Q15 R$ 884 million

2Q14 R$ 903

million

2Q15 R$ 4,817 million

2Q14 R$ 3,649

million

32.0% R$ 1,168 million

IFRS

Proportionate Consolidation of

Generation + Sectorial Financial

Assets & Liabilities + Non-recurring items

-2.1% R$ 19 million

8

Sector financial asset and liability (CVA)

R$ 881 MM

RTE/RTA5 +48%

Sales in the concession area (GWh)

-2.9%

Distribution

Resultados 1T15

9

-10.3%

2Q14 Adjusted EBITDA¹

Net Revenues²

Energy Costs and Charges

PMSO +PPF

Reg. A&L 2Q14

2Q15 Adjusted EBITDA¹

Non-Rec. 2Q14

2Q14 IFRS

EBITDA

Prop. Consol. 2Q14

-2.1%

EBITDA | R$ million

32.0% increase in Net Revenues2 (R$ 1.168 million)

Distribution +42.4% (R$ 1,199 million)

Renewable Generation +9.3% (R$ 13 million)

Commercialization and Services +0.2% (R$ 1 million)

Conventional Generation -16.4% (R$ 96 million)

Segments Elimination -12.0% (R$ 50 million)

56.1% increase in Energy Costs and Charges (R$ 1,187 million)

Distribution +64.9% (R$ 1,277 million)

Commercialization and Services +0.6% (R$ 2 million)

Conventional Generation -R$ 144 million

Renewable Generation -26.6% (R$ 7 million)

Segments Elimination -15.5% (R$ 58 million)

1) Proportionate consolidation of projects; 2) Disregard construction revenues; 3) Average PLD SE/CW; 4) Exchange rate (US$) - end of the period; 5) Average price variation (Residential class)

Prop. Consol. 2Q15

Non-Rec. 2Q15

2Q15 IFRS

EBITDA

R$/US$4

PLD (R$/MWh)3 680.82

2.20 3.10

382.82

2Q14 2Q15

Resultados 1T15

10

-10.3%

2Q14 Adjusted EBITDA¹

Net Revenues²

Energy Costs and Charges

PMSO +PPF

Reg. A&L 2Q14

2Q15 Adjusted EBITDA¹

Non-Rec. 2Q14

2Q14 IFRS

EBITDA

Prop. Consol. 2Q14

-2.1%

EBITDA | R$ million

) 0.1% increase in Operating Costs and Expenses ³ (R$ 1 million)

PMSO Services (R$ 7 million)

Acquisition of fuel oil for EPASA (R$ 70 million)

Personnel +7.0% (R$ 13 million) – labor agreement (R$ 9 million) and others (R$ 4 million)

Material +10.7% (R$ 2 million)

Services +3.1% (R$ 3 million)

Others + 35.6% (R$ 41 million)

Legal and judicial indemnities + 67.6% (R$ 30 million)

Allowance for Doubtful Accounts +75,6% (R$ 18 million)

Others -14.3% (R$ 7 million)

Private Pension Fund +35.8% (R$ 4 million)

1) Proportionate consolidation of projects; 2) Disregard construction revenues; 3) Including Private Pension Fund.

Prop. Consol. 2Q15

Non-Rec. 2Q15

2Q15 IFRS

EBITDA

Disregarding the effects above, PMSO increased 14.7% (R$ 64 million)

11

P

MSO

2011 2012 2013 2014 LTM-2Q15

713 672 627 651 669

912846

714 738 708

R$ 248 million (-15.2%)

1,389 1,341

1,625

IGPM: 20.7%

1,347 1,330 1,248

1,362 1,518

P

MSO

1) June/15. Variation of IGP-M in the period 2015 x 2011= 20.7%; 2015 x 2012 = 14.7% and 2015 x 2013 = 7.5% and 2005 x 2014=2.0%. PMSO disregarding Private Pension Fund. Excludes non-recurring items, acquisition of fuel oil for EPASA power plants, PMSO of Services and CPFL Renováveis segments, Legal, Judicial and Indemnities and Personnel capitalization costs since January 2014, due to the new methodology established by Aneel.

Nominal Adjusted PMSO | R$ Million Real Adjusted PMSO¹ | R$ Million

+1.1%

-0.9%

1,377 1,377

Manageable expenses | Real adjusted PMSO LTM-2Q15 x 2011

2011 2012 2013 2014 LTM-2Q15

591 589 584 639 669

756 741 664723 708

12 12

2.1% decrease in EBITDA (R$ 19 million)

R$ 903 million in 2Q14 to R$ 884 million in 2Q15

16,7% decrease in Negative Net Financial Result (R$ 35 million)

Variation of concession financial asset (R$ 68 million)

Mark-to-market effect – operations under Law 4,131 – non-cash (R$ 24 million)

Restatement of Sector financial asset/liability (CVA) (R$ 17 milhões)

Itaipu currency variation (R$ 9 million)

Increase in CDI and debt (R$ 84 million)

Others (R$ 2 milhões)

6.6.% increase in Depreciation and Amortization (R$ 18 million)

Decrease of Income Tax and Social Contribution (R$ 11 million)

2Q15 Results

Net Income | R$ million

2Q14 Adjusted

Net Income¹

Depreciation Amortization

2Q15 Adjusted Net

Income¹

Non-Rec. 2Q15

2Q14 IFRS

Net Income

IR/CS EBITDA Financial Result

Non-Rec. 2Q14

Regul. A&L 2Q14

Prop. Cons. 2Q14

-37.9%

+3.5%

Prop. Cons. 2Q15

2Q15 IFRS

Net Income

10.6% p.a. 12,9% a.a.

2Q14 2Q15

CDI

R$/US$² 2.20 3.10

1) Take into account proportionate consolidation of projects 2) Exchange rate (US$) – end of the period

Leverage1 | R$ billion

Adjusted net debt1/ Adjusted EBITDA2

3,570 3,830 3,886 3,736 3,835 3,755 Adjusted EBITDA1,2 R$ million

1) Financial covenants criteria. 2) LTM recurring EBITDA. 13

Evolution of Cash Balance and CVA | R$ billion

CVA’s recivable (until 2Q15) has been deteriorating

the cash balance.

Adjusting this cash balance, net debt / EBITDA would

3,23x in 2Q15.

4,930 4,929 4,999 4,370

5,023 4,459

+0%

+43%

-13%

With adjust of CVA in cash balance

Indebtedness | Control of financial covenants

14

Debt amortization schedule3,4 | Jun-15 | R$ million

Cash coverage: 1.84x short-term amortization (12M)

Average tenor: 3.74 years

Short-term (12M): 10.0% of total

CDI

Prefixed (PSI)

IGP

TJLP

Gross debt breakdown by indexer | 2Q15 4,2

Gross debt cost1,2 | LTM

Nominal

Real

1) Adjusted by the proportional consolidation since 2012; 2) Financial debt (+) private pension fund (-) hedge; 3) Considers Debt Principal; 4) Covenants Criteria; 5) Amortization from July-2016.

5l

Debt profile | on June 30, 2015

15

Commercial Start-up 2016-2020(e)

333 MW of installed capacity

183 average-MW of assured energy

Campo dos Ventos and São Benedito Wind Farms

Mata Velha SHPP Pedra Cheirosa Wind

Farms Boa Vista II SHPP

Commercial Start-up 20161 20161 20182 2020

Installed Capacity 231.0 MW 24.0 MW 51.3 MW 26.5 MW

Assured Energy 129.2 average-MW3 13.1 average-MW 26.1 average-MW3 14.8 average-MW

PPA4 ACL 20 years 16th LEN 20135

R$ 143.30/MWh until 2047

18th LEN 20145

R$ 133.00/MWh until 2037

21st LEN 2015 R$ 207.64/MWh

until 2049

Financing BNDES

(under analysis) BNDES

(under analysis) BNDES

(being structured) BNDES

(being structured)

Winner A-5

Auction

2015

Generation | Greenfield projects

1) Gradual commercial operation from 2Q16; 2) Gradual commercial operation from 1H18; 3) Assured Energy calculated in the P90; 4) Constant Currency (jun/15); 5) With the anticipation of work, a bilateral contract (Free Market) will run between 2016 and 2018, when the supply of LEN 2013 starts.

16

4rd Tariff Review Cycle | CPFL Piratininga (preliminary proposal)

Methodology Changes 4rd cycle

(R$ million)

Variation on 3rd cycle

(R$ million)

WACC from 7.50% to 8.09%

Capital Remuneration 210 +15

Creation of Special Obligations Remuneration

Special Obligations Remuneration 11 +11

Methodology Changes of Technical Losses

Technical Losses 143 +9

Other Revenues – Methodology Simplification

Other Revenues Sharing -36 +6

Extension of the aging from 49 to 60 months

Irrecoverable Revenue 24 -7

Xpd from 1,11% to 1,53%

Xpd Factor -6 -4

Total Effects +29

New methodology of the 4rd Tariff Review Cycle for CPFL Piratininga, generated a annual benefit of R$ 29 million (preliminary figures)

17

4rd Tariff Review Cycle | CPFL Piratininga

June July August September October

Schedule 4rd Tariff Review Cycle | CPFL Piratininga

Dia 19: Aneel submits preliminary proposal to CPFL

Dia 3: Aneel’s meeting Dia 21: Public Hearing Opening (technical notes release)

Dia 13: In-house public hearing (opportunity for unions, consumers, etc. give their opinions) Dia 27: End of in-house public hearing (deadline for contributions)

Dia 18: Aneel submits final proposal to CPFL Dia 25: Meeting with Aneel

Dia13: Meeting of Aneel’s Board of Directors Dia 23: Piratininga’s tariffs published

18 1) November/14 to April/15 average; 2) May/15 to August/15 average; 3) ONS forecast for August (RV1)

20.6 23.230.1 34.9 36.9

38.3

40.835.8

50.1

40.0

75.7

30.6

42.642.9

0

20

40

60

80

100

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2002

2012

2013

2014

ONS Forecast

2015

August, 12 (current): 39.5%

22.4

10

20

30

40

50

60

70

Nov-1

2D

ec-

12

Jan-1

3Feb-1

3M

ar-

13

Apr-

13

May-1

3Ju

n-1

3Ju

l-13

Aug-1

3Sep-1

3O

ct-

13

Nov-1

3D

ec-

13

Jan-1

4Feb-1

4M

ar-

14

Apr-

14

May-1

4Ju

n-1

4Ju

l-14

Aug-1

4Sep-1

4O

ct-

14

Nov-1

4D

ec-

14

Jan-1

5Feb-1

5M

ar-

15

Apr-

15

May-1

5Ju

n-1

5Ju

l-15

Aug-1

5

ENA SE/CW LTA

Reservoir Levels and ENA

NIPS Reservoir Levels | %

Natural Inflow Energy (ENA) | SE/CW | GW average ENA | % LTA

19 1) Including real figures in the period Jan-Jul/15

2014 65.1 Gwavg

ONS (PEN 2015) 67.3 Gwavg +3.3%

ONS Aug-15 - Review¹

64.0 Gwavg -1.7%

CPFL 63.6 Gwavg -2.8%

NIPS Load Evolution | Load reduction contributes to the preservation of reservoirs levels

NIPS Load Evolution 2015

+2.7% -2.6%

-7.4%

-7.9% -7.6%

-5.5%

-4.6%

Deviance

68.1

66.6

63.9

60.9

59.9 60.1

61.1

63.6

65.2 65.0 64.5

67.8

69.9 69.9

67.6

65.8 65.0 65.1

66.5 67.1

67.9 67.7 67.2

60.6

61.4

63.0 62.6

62.6

Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15

Real

ONS (Aug/15 - Review)

ONS (PEN jan/15)

CPFL

Dry Season Wet Season

20

15.0%

20.6%23.3%

30.2%

34.9%36.9% 38.3%

40.8%

25.0%

Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15

Historical average (1997-2014):

74.7% Historical average

(1997-2014):

42.4%

ENA August:

91%

Scenarios for reservoir levels¹| Forecast for November is 25%

1) Probability considers the historical series

Scenarios for reservoir levels

ENA needed (Aug-Nov): 66%

Probability Lower ENA¹: 2%

ENA needed (Aug-Nov): 90%

Probability Lower ENA¹: 44%

2Q14 2Q15

24.5 28.9

14.9 14.7

-3.7%

2.7%

-0.9%

Fonte: Economatica; 1) with adjustment by dividends; 2) Until 06/30/15

Daily average trading volume on BM&FBovespa + NYSE2 | R$ million

43.6

Bovespa NYSE Daily average number of trades on BM&FBovespa

Shares performance on BM&FBovespa | 2Q151,2

Shares performance on NSYE | 2Q151,2

+1.9% 5,332 5,434

CPFE3 IEE IBOV

-2.9%

10.0%

3.8%

CPFL Energia is present in the main indexes

Desempenho das ações

21

39.4

Stock Market Performance

CPL Dow Jones Br20

Dow Jones Index

• CPFL Paulista was awarded in customer evaluation category among the distributors above 500 thousand customers.

• RGE was awarded in Social Responsability category

Abradee Award 2015

• Evaluation of the 250 best Brazilian companies

• CPFL Energia took the first place in the Utilities Sector

Company of the year 2015 | Época Negócios 360º Yearbook

22

• The ranking is divided in two groups: large distributors (eletric energy Market above 1TWh) and small distributors (eletric energy market up to 1TWh – including 1TWh)

• CPFL Santa Cruz was elected the best distributor in large distributor category

Ranking of Service Continuity 2014 | ANEEL

Awards and recognitions

Implementation

Feasibility

Opportunity

23

• Outlook 2020: 10 million of electric vehicles in activity

• Brazil owns the 4th largest vehicle market in the world

• CPFL Energia has surveilled the development of electric vehicles since 2007

Electric Mobility Program

• On June, CPFL Energia established a partnership with Rede Graal (Gas Station 67 - Jundiaí)

• Development of the first highway adapted to electric vehicles

• Target: up to 30 chargers covering public and private places

• Charging up to 80% in half hour

• Monthly average consumption of an electric vehicle: 146 kWh (increasing of 73%1)

• Savings of R$ 13.5 thousand2 by vehicle replaced

CPFL Experience 90 thousand km

1) Assumptions: 12,000km per year and efficiency of 0.15 kWh/km (ZOE of CPFL Energia). The customer’s consumption of CPFL Paulista is approximately 200 kWh/month. 2) Gas cost R$ 3.00/L; Energy cost (both including tax) R$ 0.62 (residential tariff); Usual vehicle consumption: 12 km/L; Electric vehicle consumption: 6.2 km/kWh

© CPFL 2015. Todos os direitos reservados.